Welfare Ministry: relative poverty reducing in Latvia

Even though the post-crisis indexes show that relative poverty is reducing in Latvia, the depth of poverty has increased, and increasingly more residents are unable to pay for various goods and services, the Welfare Ministry informs in a report.

The report says that income
inequality reduced slightly since the crisis, which was mostly due to
reductions in the wealthier households' incomes, as well as efficient welfare
system and higher pensions, writes LETA.

The report says that the effect of
the security system on poverty in 2010 was the greatest since 2004. 19% of
residents were exposed to the risk of poverty in 2010, but the figure would
have been 46% if not for various welfare benefits, pensions and other social
aid, the Welfare Ministry informs.

Although the social welfare system
has made it possible for thousands of people to survive the crisis, the
severity of the crisis and the constantly high unemployment had a profound
effect on the quality of life in Latvia. The report notes that the depth of
poverty continues to increase in the wake of the crisis, and that residents'
material situation continues to decline, mostly due to increasing consumer
prices.

"The social security system
has proven its efficiency both during the crisis and the post-crisis periods,
ensuring income for a majority of Latvia's residents," said the Welfare
Ministry's State Secretary Ieva Jaunzeme.
"At the moment, the ministry's priority is to find ways to help those who
have been affected by the crisis to return to the labor market and be able to
provide for themselves and their families."

Political actions needed to reduce unemploymentNew Labour Market and Wage Developments Report (2014) published recently has shown that over 23,5 million people in the EU are out of job. According to the report, during five last years there was almost continuous decline in employment...